Scottish Friendly, the Glasgow-based financial services group and Scotland’s largest mutual life office, today (Wednesday 27 April 2011) announced funds under management or administration of just under £4 billion, growth of more than 500% over the past five years.
Additionally Scottish Friendly’s core life and pensions sales for 2010 were £11.4m, an increase of 50% over 2009’s £7.6m, based on the industry standard of regular premiums plus one tenth of single premiums.
A return of 11.3% in Scottish Friendly’s with-profits fund for 2010 was also announced and represents a further uplift in asset values following a strong increase in 2009. This return has allowed Scottish Friendly to again increase its current final bonus to members with maturing policies. The organisation featured as a top ten performer for ten year plans in the annual Money Management with-profits past performance survey (April, 2011).
Scottish Friendly reaped the benefits of its partnership programme with industry names such as Phoenix, Royal London and Eui group, best known for its Admiral and elephant.co.uk brands as well as specialist providers like Forces Financial.
In addition, the Scottish Friendly group continued to expand through its business process outsourcing subsidiary, Scottish Friendly Insurance Services, which administers and provides sophisticated wrap products for Nucleus Financial and Aviva.
Chairman Michael Walker said:
2010 has been another year of strong progress for Scottish Friendly as it developed its partnership distribution channel and its e-commerce business. Furthermore, the group continues to create income and value for our members with the continued growth of our third party administration business.
“We expect the market for savings and investments to remain difficult in 2011, but we are of course continuing to actively seek ways to promote the value of long-term savings habits and to further realise value for our members in the course of 2011.
Fiona McBain, chief executive, said:
Scottish Friendly delivered strong results in 2010, achieving sales in excess of forecast and increasing assets under administration and management. The keys to the success of our strategy are diversification and flexibility, and once again we have delivered growth despite continued fragility in the economy and in consumer confidence.
The UK and world economies in 2011 are, if anything, even more uncertain than 2010. I have no doubt that, while 2011 will present a number of difficulties, Scottish Friendly’s proven strategy will continue to deliver value for its members.